HSBC and Standard Chartered Lead the Way! Hong Kong's First Batch of Stablecoin Licenses to Be Issued as Early as March 24, Monetary Authority Prioritizes Institutions with Note-Issuing Authority

The Hong Kong Monetary Authority is expected to issue the first batch of stablecoin licenses by the end of this month. Initially, only a “very limited” number of issuers will be permitted, with HSBC and Standard Chartered, both holding authorized Hong Kong dollar issuance licenses, being the most prominent candidates. According to the South China Morning Post, these two institutions have been prioritized, with a potential issuance date set for March 24.

(Background: Hong Kong’s first stablecoin license is expected as early as next week: Standard Chartered, HSBC, and OSL are likely contenders)

(Additional context: Hong Kong’s Stablecoin Ordinance took effect on August 1. HKMA Chief Executive Eddie Yue stated that stablecoins are not speculative tools, and the three major thresholds form a protective barrier for the Hong Kong dollar)

Hong Kong is about to take a historic step in stablecoin regulation. According to the South China Morning Post, the Hong Kong Monetary Authority (HKMA) is preparing to issue the first stablecoin issuer licenses. HSBC and a joint venture led by Standard Chartered are seen as the most likely to be approved first. Sources indicate that the potential issuance date is March 24, but the final timeline will depend on the number of licenses granted and the confirmation of implementation details.

Currently, the HKMA has authorized three commercial banks—HSBC, Standard Chartered, and Bank of China—to issue banknotes in Hong Kong. The focus on these two institutions for the initial licenses is due to their existing authorization to issue Hong Kong dollars, giving them an advantage in compliance and regulatory trust. Notably, neither the HKMA, Standard Chartered, nor HSBC has officially confirmed any license applications or approval progress.

HKMA Chief Executive: Only a “Very Limited” Number of First Issuers

HKMA Chief Executive Eddie Yue publicly stated in February that the initial issuance of stablecoin licenses will be very limited, covering only a “very small number” of issuers. This aligns with market expectations that Hong Kong’s regulators will proceed cautiously—prioritizing traditional financial institutions with strong backing to pilot the system before full implementation.

Hong Kong officially enacted the Stablecoin Ordinance in August 2025, establishing a statutory regulatory framework that explicitly prohibits unlicensed entities from issuing fiat-pegged stablecoins to retail investors. Since the law came into effect, the industry has responded positively. By September 2025, the HKMA had received 36 license applications, including major financial institutions such as HSBC, Standard Chartered, and ICBC.

Hong Kong’s Ambition: Building a Global Digital Asset Hub

This license initiative marks a key step toward Hong Kong’s goal of becoming a global digital asset center. Although reports suggest that resistance from Mainland China has added some complexity to the regional stablecoin development, Hong Kong regulators remain committed to advancing the regulatory framework.

If the first licenses are granted to HSBC and Standard Chartered, it will set an important compliance benchmark for the market and serve as a reference for future applications. Industry experts generally expect that once the initial licenses are issued smoothly, Hong Kong’s stablecoin ecosystem pegged to the Hong Kong dollar will accelerate its development.